Industry is key to meeting climate targets
Efficient technologies roll-out will cut carbon emissions by 15%
The production systems industry has always worked hard to continuously drive up efficiency levels. The economic and ecological benefits of these efforts by engineers used to be almost impossible to quantify. But Roland Berger Strategy Consultants has produced a study that, for the first time, comes up with concrete figures. In "How the engineering sector contributes to energy efficiency", the experts have calculated the savings made through developments both in the engineering sector and in the industries it serves: around 7,000 petajoule per year in Europe, based on the achievements over the last decade and the expected savings over the coming decade. Specifically for Austria, 143 petajoule can be saved annually, amounting to about 25% of the country's industrial energy demand. In terms of environmental benefits, this means that alone the use of energy-efficient plant and machinery can prevent around 15% of Austria's annual carbon emissions in the period up to 2020.
Energy efficiency plays a central role in the production systems industry. Efficiency means that companies can reduce operating costs and use the savings to invest in new plant and machinery. In Austria, around 14 million tons of carbon per year can be saved in industry and power generation – offering a bigger potential than most other actions that counter climate change. To put this in context: In 2008, Austria was still 11 million tons short of its Kyoto target for CO2 reduction.
Major contribution to carbon reduction
Energy savings not only optimize company expenditures but also make a significant macro-economic contribution by reducing the concomitant damage from carbon emission. With more efficient plants and machines being rolled out across Europe, 1.1 billion tons of carbon dioxide can be saved per year – around 17% of total European emissions (base year: 2007). The biggest share (approx. 60%) will come from the power generating sector. Apart from efficiency improvements, the replacement of old technologies is having a particularly positive impact here.
Efficiency gains increasing
Although major advances have already been made on the efficiency front over the last ten years, industry will achieve far greater gains in the decade ahead. There are several factors driving down its energy requirements. The potential for savings is growing as suppliers produce ever more energy-efficient plant and machinery, and customers are increasingly using such systems.
Deployment of efficient technologies to rise by 50%
The use of efficient technologies by the engineering industry's customers, across all sectors, is set to rise markedly in the next ten years, from 40% to 60% (realization level). Half of the energy efficiency gains will be achieved by implementing the improved technologies that already exist, and the other 50% will come from technologies still under development. For the production systems industry, the three most important technological levers will remain the same going forward: process optimization, system control optimization and design optimization.
Energy savings in the conversion sector (energy producers, refineries) will more than double over the next ten years compared to the last decade. This is only partly explained by the efficiency-improved systems offered through design ¬optimization and increased penetration. Considerable savings are also delivered by substitution effects. In addition to the rising efficiency of the plant and machinery supplied, further impetus can also be expected to come from customer-side initiatives. From the engineering industry's customers in every sector, the study puts an average energy savings potential at a further 9%. The key levers for improvement here are: realigning installed capacity, optimizing processes, optimizing system control of all machines (through closer collaboration with the suppliers) and changes in staff behavior. This will not apply to the conversion sector, which cannot expect to achieve further energy savings for customers who have already installed the new systems.
Technical potential certainly exists for further drastic cuts in carbon output. In Austria, steps must be taken to ensure that this potential is realized in practice. The study argues for a policy framework that shifts the focus of research and development onto high-tech and includes better incentives to promote new technologies.
The production systems industry has always worked hard to continuously drive up efficiency levels. The economic and ecological benefits of these efforts by engineers used to be almost impossible to quantify. But Roland Berger Strategy Consultants has produced a study that, for the first time, comes up with concrete figures. In "How the engineering sector contributes to energy efficiency", the experts have calculated the savings made through developments both in the engineering sector and in the industries it serves: around 7,000 petajoule per year in Europe, based on the achievements over the last decade and the expected savings over the coming decade. Specifically for Austria, 143 petajoule can be saved annually, amounting to about 25% of the country's industrial energy demand. In terms of environmental benefits, this means that alone the use of energy-efficient plant and machinery can prevent around 15% of Austria's annual carbon emissions in the period up to 2020.
Energy efficiency plays a central role in the production systems industry. Efficiency means that companies can reduce operating costs and use the savings to invest in new plant and machinery. In Austria, around 14 million tons of carbon per year can be saved in industry and power generation – offering a bigger potential than most other actions that counter climate change. To put this in context: In 2008, Austria was still 11 million tons short of its Kyoto target for CO2 reduction.
Major contribution to carbon reduction
Energy savings not only optimize company expenditures but also make a significant macro-economic contribution by reducing the concomitant damage from carbon emission. With more efficient plants and machines being rolled out across Europe, 1.1 billion tons of carbon dioxide can be saved per year – around 17% of total European emissions (base year: 2007). The biggest share (approx. 60%) will come from the power generating sector. Apart from efficiency improvements, the replacement of old technologies is having a particularly positive impact here.
Efficiency gains increasing
Although major advances have already been made on the efficiency front over the last ten years, industry will achieve far greater gains in the decade ahead. There are several factors driving down its energy requirements. The potential for savings is growing as suppliers produce ever more energy-efficient plant and machinery, and customers are increasingly using such systems.
Deployment of efficient technologies to rise by 50%
The use of efficient technologies by the engineering industry's customers, across all sectors, is set to rise markedly in the next ten years, from 40% to 60% (realization level). Half of the energy efficiency gains will be achieved by implementing the improved technologies that already exist, and the other 50% will come from technologies still under development. For the production systems industry, the three most important technological levers will remain the same going forward: process optimization, system control optimization and design optimization.
Energy savings in the conversion sector (energy producers, refineries) will more than double over the next ten years compared to the last decade. This is only partly explained by the efficiency-improved systems offered through design ¬optimization and increased penetration. Considerable savings are also delivered by substitution effects. In addition to the rising efficiency of the plant and machinery supplied, further impetus can also be expected to come from customer-side initiatives. From the engineering industry's customers in every sector, the study puts an average energy savings potential at a further 9%. The key levers for improvement here are: realigning installed capacity, optimizing processes, optimizing system control of all machines (through closer collaboration with the suppliers) and changes in staff behavior. This will not apply to the conversion sector, which cannot expect to achieve further energy savings for customers who have already installed the new systems.
Technical potential certainly exists for further drastic cuts in carbon output. In Austria, steps must be taken to ensure that this potential is realized in practice. The study argues for a policy framework that shifts the focus of research and development onto high-tech and includes better incentives to promote new technologies.
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